Perfect competition is a market in which there are many firms, each

 

Perfect competition is a market in which there are many firms, each selling an identical product; many buyers; no barriers to the entry of new firms into the industry; no advantage to established firms; and in which buyers and sellers are well informed about prices.

  • Explain why perfect competition is efficient.
  • Determine whether perfect competition is fair based on the two views, i.e., fair rules and a fair result.

Your evaluation should be based on the many perfect competition markets that you encounter in your everyday life, and your research conducted on this topic.

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